mom and i sold houses together for over 22 years, until she retired in 2015. i have kept on selling houses. for sellers who are moving on, and to buyers who are moving in. real estate is such a part of our daily lives, that it carries over into everything we are. and it is of interest to so many people. so i thought i would start talking. who knows...i may actually find that i have something interesting to say :) www.tkmomteam.com

Friday, June 30, 2017

Do You Know How Much Equity You Have in Your Home?

CoreLogic’s latest Equity Reportrevealed
that 91,000 properties regained equity in the first quarter of 2017.
This is great news for the country, as 48.2 million of all mortgaged
properties are now in a positive equity situation.Price Appreciation = Good News for Homeowners
Frank Nothaft, CoreLogic’s Chief Economist, explains:

“One million borrowers achieved positive equity over the last year, which means risk continues to steadily decline as a result of increasing home prices.”

Frank Martell, President and CEO of CoreLogic, believes this is a great sign for the market in 2017 as well, as he had this to say:

“Homeowner equity increased by $766 billion over the last year, the largest increase since Q2 2014.
The rising cushion of home equity is one of the main drivers of
improved mortgage performance. Since home equity is the largest source
of homeowner wealth, the increase in home equity also supports consumer
balance sheets, spending and the broader economy.”

This is great news for homeowners! But, do they realize that their equity position has changed?

According to the Fannie Mae’s Home Purchase Sentiment Index (HPSI), more homeowners are beginning to realize that they may have more equity than they first thought.

“This is only the second time in the survey’s history that the net share of those saying it’s a good time to sell surpassed the net share of those saying it’s a good time to buy.”

78.8% of homeowners have significant equity (more than 20%) in their homes today!

This
means that many Americans with a mortgage have an opportunity to take
advantage of today’s seller’s market. With a sizeable equity position,
many homeowners could easily move into a housing situation that better
meets their current needs (moving to a larger home or downsizing).Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae spoke out on this issue:

“High
home prices have led many consumers to give us the first clear
indication we’ve seen in the National Housing Survey’s seven-year
history that they think it’s now a seller’s market. However, we continue to see a lack of housing supply as many potential sellers are unwilling or unable to put their homes on the market…”

Bottom Line

If
you are one of the many Americans who is unsure of how much equity you
have built in your home, don’t let that be the reason you fail to move
on to your dream home in 2017! Let’s get together to evaluate your
situation!

Wednesday, June 28, 2017

Top Home Renovations for Maximum ROI [INFOGRAPHIC]

Some Highlights:

Whether you are
selling your home, just purchased your first home, or are a homeowner
planning to stay put for a while, there is value in knowing which home
improvement projects will net you the most Return On Investment (ROI).

While
big projects like adding a bathroom or a complete kitchen remodel are
popular ways to increase a home’s value, something as simple as updating
landscaping and curb appeal can have a quick impact on a home’s value.

For more information about top renovation projects that net you the most ROI, you can check out the complete list here.

Tuesday, June 27, 2017

Homeownership Is a Good Financial Investment!

According to a recent report by Trulia, “buying is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.” The
report may have some people thinking about buying a home instead of
signing another lease extension, but does that make sense from a
financial perspective?
Ralph McLaughlin, Trulia’s Chief Economistexplains:

“Owning
a home is one of the most common ways households build long-term
wealth, as it acts like a forced savings account. Instead of paying your
landlord, you can pay yourself in the long run through paying down a
mortgage on a house.”

The article listed five reasons why owning a home makes financial sense:

Mortgage payments can be fixed while rents go up.

Equity in your home can be a financial resource later.

You can build wealth without paying capital gains.

A mortgage can act as a forced savings account.

Overall, homeowners can enjoy greater wealth growth than renters.

Bottom Line

Before you sign another lease, let’s get together and discuss all your options.

Monday, June 26, 2017

The TRUTH Behind the RENT vs. BUY Debate

In a blog post published last Friday, CNBC’s Diana Olnick reported on the latest results of the FAU Buy vs. Rent Index. The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers at FAU use a “‘horse
race’ comparison between an individual that is buying a home and an
individual that rents a similar-quality home and reinvests all monies
otherwise invested in homeownership.”
Having read both the
index and the blog post, we would like to clear up any confusion that
may exist. There are three major points that we would like to counter:

1. The Title

The CNBC blog post was titled, “Don’t put your money in a house, says a new report.” The title of the press release about the report on FAU’s website was “FAU Buy vs. Rent Index Shows Rising Prices and Mortgage Rates Moving Housing Markets in the Direction of Renting.”
Now,
we all know headlines can attract readers and the stronger the headline
the more readership you can attract, but after dissecting the report,
this headline may have gone too far. The FAU report notes that
rising home prices and the threat of increasing mortgage rates could
make the decision of whether to rent or to buy a harder one in three
metros, but does not say not to buy a home.

2. Mortgage Interest Rates are Rising

According to Freddie Mac,
mortgage interest rates reached their lowest mark of 2017 last week at
3.89%. Interest rates have hovered around 4% for the majority of 2017,
giving many buyers relief from rising home prices and helping with
affordability.
While experts predict that rates will increase by the end of 2017, the latest projections have softened, with Freddie Mac predicting that rates will rise to 4.3% in Q4.

3. “Renting may be a better option than buying, according to the report.”

Of
the 23 metros that the study reports on, 11 of them are firmly in buy
territory, including New York, Boston, Chicago, Cleveland, and more.
This means that in nearly half of all the major cities in the US, it
makes more financial sense to buy a home than to continue renting one.
In
9 of the remaining metros, the decision as to whether to rent or buy is
closer to a toss-up right now. This means that all things being equal,
the cost to rent or buy is nearly the same. That leaves the decision up
to the individual or family as to whether they want to renew their lease
or buy a home of their own.
The 3 remaining metros Dallas, Denver
and Houston, have experienced high levels of price appreciation and
have been reported to be in rent territory for well over a year now, so that’s not news…

Beer & Cookies

One
of the three authors of the study, Dr. Ken Johnson has long reported on
homeownership and the decision between renting and buying a home. The
methodology behind the report goes on to explain that even in a market
where a renter would be able to spend less on housing, they
would have to be disciplined enough to reinvest their remaining income
in stocks/bonds/other investments for renting a home to be a more
attractive alternative to buying.
Johnson himself has said:

“However, in
perhaps a more realistic setting where renters can spend on consumption
(beer, cookies, education, healthcare, etc.), ownership is the clear
winner in wealth accumulation. Said another way, homeownership is a
self-imposed savings plan on the part of those that choose to own.”

Bottom Line

In
the end, you and your family are the only ones who can decide if
homeownership is the right path to go down. Real estate is local and
every market is different. Let’s get together to discuss what’s really
going on in your area and how we can help you make the best, most
informed decision for you and your family.

Friday, June 23, 2017

Mortgage Interest Rates Reverse Course in 2017

To start the year, housing experts all agreed on one thing: 2017
was going to be the year we would see mortgage interest rates begin to
rise. After years of historically low rates, and an improving economy,
the question wasn’t if they would increase but instead how much they would increase. Some thought we could see rates hit 5-5.5% by the end of the year.
However,
the exact opposite has happened. Instead of higher rates as we head
into the middle of 2017, we now have the lowest rates of the year (as
reported by Freddie Mac). Here is a graph of mortgage rate movement since the beginning of the year:

Projections still call for an increase…

Bottom Line

No
one knows for sure where interest rates will be in six months. However,
if you are thinking about buying your first house or trading up to the
home of your dreams, you can still get a mortgage at historically low
rates RIGHT NOW.

Wednesday, June 21, 2017

69% of Buyers are Wrong About Down Payment Needs

According to a recent survey conducted by Genworth Financial Inc. at the Annual Mortgage Bankers’ Association Secondary Market Conference, mortgage professionals say that first-time buyers still believe a 20% down payment is necessary to buy in today’s market.
Nearly
40% of mortgage industry professionals surveyed believe that a lack of
knowledge about the home-buying process is keeping potential buyers on
the sidelines. Saving for a down payment is often cited as a huge
barrier for first-time homebuyers to make the leap into homeownership.
If
homeowners believe that they need a 20% down payment to enter the
market, they also believe that they will have to wait years (in some
markets) to come up with the necessary funds to buy their dream homes.
The
greatest source of confusion cited in the survey results centered
around down payments. The results are broken down in the chart below:
Rohit Gupta, CEO of Genworth Mortgage Insurance had this to say,

"While
first-time homebuyers continue to drive the purchase market, we believe
many are staying on the sidelines due to the misconception that a 20
percent down payment is required to secure a mortgage.There
are various low down payment options available today that allow
prospective homebuyers to reach their dreams of homeownership sooner. It
is crucial that, as an industry, we proactively educate eligible
borrowers about solutions that will enable them to buy a home when
they're ready."

Bottom Line

Don’t
let a lack of understanding of the home-buying process keep you and
your family out of the housing market. Let’s get together to discuss
your options!

“Even
as more homes come on the market for this traditionally popular sales
season, they're flying off fast, with bidding wars par for the course.
Home prices have now surpassed their last peak, and at the entry level,
where demand is highest, sellers are firmly in the driver's seat.”

"The
early returns so far this spring buying season look very promising as a
rising number of households dipped their toes into the market and were
successfully able to close on a home last month. Although finding
available properties to buy continues to be a strenuous task for many
buyers, there was enough of a monthly increase in listings…for sales to
muster a strong gain. Sales will go up as long as inventory does."

“Despite
higher mortgage rates, the potential for home sales increased on an
annual basis driven by steady income and job growth, along with a surge
in building permits. While it may be a little late for this spring, the
increase in building permits is a welcome sign that some relief may be
in sight for the inventory shortages that are holding back many markets
from realizing their full potential this spring.”

Monday, June 19, 2017

Is Now a Good Time to Rent?

People often ask if now is a good time to buy a home, but nobody
ever asks when a good time to rent is. Regardless, we want to make
certain that everyone understands that today is NOT a good time to rent.
The Census Bureau recently released their 2017 first quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:
As
you can see, rents have steadily increased and are showing no signs of
slowing down. If you are faced with making the decision of whether or
not you should renew your lease, you might be pleasantly surprised at
your ability to buy a home of your own instead.

Bottom Line

One
way to protect yourself from rising rents is to lock in your housing
expense by buying a home. If you are ready and willing to buy, let’s
meet to determine if you are able to today!

Wednesday, June 14, 2017

5 Reasons to Hire a Real Estate Professional When Buying or Selling!

Whether you are buying or selling
a home it can be quite an adventurous journey, which is why you need an
experienced real estate professional to guide you on the path to your
ultimate goal. In this world of instant gratification and internet
searches, many sellers think that they can For Sale by Owner or FSBO.
The
5 reasons you NEED a real estate professional in your corner haven’t
changed, but have rather been strengthened by the projections of higher
mortgage interest rates & home prices as the market continues to
pick up steam.

1. What do you do with all this paperwork?

Each
state has different regulations regarding the contracts required for a
successful sale, and these regulations are constantly changing. A true
real estate professional is an expert in his or her market and can guide
you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

There are over 180 possible steps
that need to take place during every successful real estate
transaction. Don’t you want someone who has been there before, someone
who knows what these actions are, to make sure that you achieve your
dream?

3. Are you a good negotiator?

So
maybe you’re not convinced that you need an agent to sell your home.
After looking at the list of parties that you will need to be prepared
to negotiate with, you’ll soon realize the value in selecting a real
estate professional. From the buyer (who wants the best deal possible),
to the home inspection companies, to the appraiser, there are at least 11 different people who you will need to be knowledgeable of, and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly
from the start to attract the right buyers and shorten the amount of
time that it’s on the market. You need someone who is not emotionally
connected to your home to give you the truth as to your home’s value.
According to the National Association of REALTORS, “the typical FSBO home sold for $185,000 compared to $245,000 among agent-assisted home sales.”
Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

There
is so much information out there on the news and the internet about
home sales, prices, and mortgage rates; how do you know what’s going on
specifically in your area? Who do you turn to in order to competitively,
and correctly, price your home at the beginning of the selling process?
How do you know what to offer on your dream home without paying too
much, or offending the seller with a lowball offer?
Dave Ramsey, the financial guru, advises:

“When
getting help with money, whether it’s insurance, real estate or
investments, you should always look for someone with the heart of a
teacher, not the heart of a salesman.”

Hiring an
agent who has his or her finger on the pulse of the market will make
your buying or selling experience an educated one. You need someone who
is going to tell you the truth, not just what they think you want to
hear.

Bottom Line

You wouldn’t replace
the engine in your car without a trusted mechanic. Why would you make
one of the most important financial decisions of your life without
hiring a real estate professional?

Monday, June 12, 2017

4 Tips for Effectively Making an Offer

So, you’ve been searching for that perfect house to call a ‘home,’
and you finally found one! The price is right, and in such a competitive
market, you want to make sure that you make a good offer so that you
can guarantee that your dream of making this house yours comes true!Freddie Mac covered “4 Tips for Making an Offer” in their latest Executive Perspective. Here are the 4 tips they covered along with some additional information for your consideration:

1. Understand How Much You Can Afford

“While it's not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

This ‘tip’ or ‘step’ should really take place before you start your home search process.
As we’ve mentioned before,
getting pre-approved is one of many steps that will show home sellers
that you are serious about buying, and will allow you to make your offer
with the confidence of knowing that you have already been approved for a
mortgage for that amount. You will also need to know if you are
prepared to make any repairs that may need to be made to the house (ex:
new roof, new furnace).

2. Act Fast

“Even
though there are fewer investors, the inventory of homes for sale is
also low and competition for housing continues to heat up in many parts
of the country.”

According to the latest Existing Home Sales Report, the inventory of homes for sale is currently at a 3.7-month supply; this is well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.
Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

3. Make a Solid Offer

Freddie Mac offers this advice to help make your offer the strongest it can be:

“Your
strongest offer will be comparable with other sales and listings in the
neighborhood. A licensed real estate agent active in the neighborhoods
you are considering will be instrumental in helping you put in a solid
offer based on their experience and other key considerations such as
recent sales of similar homes, the condition of the house and what you
can afford.”

Talk with your agent to find out if there are any ways that you can make your offer stand out in this competitive market!

4. Be Prepared to Negotiate

“It's
likely that you'll get at least one counteroffer from the sellers so be
prepared. The two things most likely to be negotiated are the selling
price and closing date. Given that, you'll be glad you did your homework
first to understand how much you can afford.Your agent
will also be key in the negotiation process, giving you guidance on the
counteroffer and making sure that the agreed-to contract terms are met.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home." If the inspector
uncovers undisclosed problems or issues, you can discuss any repairs
that may need to be made with the seller, or cancel the contract.

Bottom Line

Whether
you’re buying your first home or your fifth, having a local
professional on your side who is an expert in their market is your best
bet in making sure the process goes smoothly. Happy House Hunting!

Friday, June 2, 2017

Do You Know the Cost of NOT Owning Your Home?

Owning a home has great financial benefits, yet many continue
renting! Today, let’s look at the financial reasons why owning a home of
your own has been a part of the American Dream for as long as America
has existed.Zillow recently reported that:

“With
Rents continuing to climb and interest rates staying low, many renters
find themselves gazing over the homeownership fence and wondering if the
grass really is greener. Leaving aside, for the moment, the
difficulties of saving for a down payment, let’s focus on the monthly
expenses of owning a home: it turns out that renters currently paying the median rent in many markets could afford to buy a higher-quality property than the typical (read: median-valued) home without increasing their monthly expenses.”

What proof exists that owning is financially better than renting?

1. The latestRent Vs. Buy Report from Trulia pointed out the top 5 financial benefits of homeownership:

Mortgage payments can be fixed while rents go up.

Equity in your home can be a financial resource later.

You can build wealth without paying capital gain.

A mortgage can act as a forced savings account

Overall, homeowners can enjoy greater wealth growth than renters.

2. Studies have shown that a homeowner’s net worth is 45x greater than that of a renter.
3. Just a few months ago, we explained
that a family buying an average priced home at the beginning of 2017
could build more than $42,000 in family wealth over the next five years.
4.
Some argue that renting eliminates the cost of taxes and home repairs,
but every potential renter must realize that all the expenses the
landlord incurs are already baked into the rent payment –along with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting.

Thursday, June 1, 2017

3 Reasons the Housing Market is NOT in a Bubble

With housing prices appreciating at levels that far exceed
historical norms, some are fearful that the market is heading for
another bubble. To alleviate that fear, we just need to look back at the
reasons that caused the bubble ten years ago.
Last decade, demand
for housing was artificially propped up because mortgage lending
standards were way too lenient. People that were not qualified to
purchase were able to obtain a mortgage anyway. Prices began to
skyrocket. This increase in demand caused homebuilders in many markets
to overbuild.
Eventually, the excess in new construction and the
flooding of the market with distressed properties (foreclosures &
short sales), caused by the lack of appropriate lending standards, led
to the housing crash.

Where we are today…

1. If we look at lending standards based on the Mortgage Credit Availability Index released monthly by the Mortgage Bankers Association,
we can see that, though standards have become more reasonable over the
last few years, they are nowhere near where they were in the early
2000s.
2. If we look at new construction, we can see that builders are not “over building.”
Average annual housing starts in the first quarter of this year were
not just below numbers recorded in 2002-2006, they are below starts
going all the way back to 1980.
3. If we look at home prices, most homes haven’t even returned to prices seen a decade ago. Trulia just released a report that explained:

“When
it comes to the value of individual homes, the U.S. housing market has
yet to recover. In fact, just 34.2% of homes nationally have seen their
value surpass their pre-recession peak.”

Bottom Line

Mortgage
lending standards are appropriate, new construction is below what is
necessary and home prices haven’t even recovered. It appears fears of a
housing bubble are over-exaggerated.

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About Me

i am a mom. and a wife. and a realtor. when i grow up i want to spend all day taking pictures and then spend all night looking at them. in the meantime, i am going to keep selling houses. for sellers who are moving on, and to buyers who are moving in. real estate is such a part of our daily lives, that it carries over into everything we are. and it is of interest to so many people. so i thought i would start talking. who knows...i may actually find that i have something interesting to say :)